Accor: leads the CAC 40, as Barclays sees entry point

(CercleFinance.com) - Accor climbed on the Paris Bourse on Wednesday, following an upgrade from Barclays, which sees no justification for the stock's underperformance relative to its peers.


The stock was up over 2% at around 1:45pm, making it the biggest riser on the Paris CAC 40 index, which was down 0.4%.

In a note, the broker points out that the stock has significantly underperformed its peers over the past 12 months, and is now trading at a 34% discount to InterContinental Hotels Group (IHG).

The stock is also trading at a discount to its own historical average.

Yet, it argues that Accor generates a much higher revenue per available room (RevPAR) than its competitors, and its four-year EPS growth target of 15% is close to that of IHG, taking share buybacks into account.

While catalysts remain limited in the near term, we see this bout of weakness as an attractive entry point from a long-term perspective, it concludes.

Barclays therefore upgrades its recommendation on the stock from 'equal weight' to 'overweight', with a target price raised from E33 to E48.


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